MrSteve,
If people could make their repayments, then there would be no need to refinance into another honeymoon rate, hence the falling house prices would be irrelevant.
The cause is the servicibility of the loans, the effect is falling housing prices.
True about 20% of loans in the US are subprime, and it's only tiny in AUS. Regardless of how many lines of your posts I read, I still don't think you're right.
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